eQ Plc interim report 1 January - 30 September 2025

Core Insights - eQ Plc reported a significant decline in net revenue and operating profit for the period from January to September 2025, with net revenue at EUR 42.9 million, down 16% from EUR 50.9 million in the same period of 2024, and operating profit decreased by 30% to EUR 19.4 million from EUR 27.6 million [4][8][23] Financial Performance - The Group's net fee and commission income was EUR 43.7 million, down from EUR 49.8 million [4] - Earnings per share fell to EUR 0.37 from EUR 0.53, reflecting a 30% decrease [3][4] - The Asset Management segment's net revenue decreased by 6% to EUR 42.7 million, while operating profit fell by 12% to EUR 23.6 million [4][12] - The Corporate Finance segment reported a net revenue of EUR 1.0 million, down 77% from EUR 4.3 million, with an operating loss of EUR -1.3 million [3][14] - The Investments segment experienced a significant decline, with net revenue at EUR -1.1 million compared to EUR 0.5 million, and an operating loss of EUR -1.1 million [3][16] Market Conditions - The overall market sentiment remained positive, driven by AI-fueled growth expectations, despite geopolitical and trade policy tensions [6] - Central banks globally continued to cut interest rates, impacting bond yields and corporate bond spreads [7] - The real estate market in Finland showed signs of recovery, although liquidity remained low and yield requirements unchanged [18] Strategic Developments - Jouko Pölönen was appointed as the new CEO of eQ Plc, effective September 1, 2025 [4][17] - eQ Asset Management raised over EUR 225 million for private equity and residential funds during the review period, indicating strong demand despite challenging market conditions [9][10] - The company is focusing on clarifying its strategy and identifying future growth opportunities, with a report expected in early February 2026 [17] Future Outlook - The real estate fund management fees are anticipated to decrease in 2025 compared to the previous year, while private equity fees are expected to increase [19][20] - The recovery of the real estate market is contingent on the Finnish economy and foreign capital inflows [18]